debt to credit ratio

[dori2 s13coupe]

im trying to figuire this whole thing out

i know that im not suppose to use more than 30% of my credit line.

so should i not use more than 150 of my 500 credit limit?
along with my other card, 600 of my 2000 credit line?

or does it just mean every time i pay my credit card i should leave a balance of 150 for my 500 card and 600 for my 2000 card? but during the month dont go past 70% my card but pay off 40% so i only have 30% balance on my credit?

[axiomatik]

Just don't spend more than you can afford. If you can't pay off your bill at the end of the month, you're buying too much crap. I would only use 1 card (the $500 one to keep your spending in check), just keep the other for an emergency. Never leave a balance at the end of the month, because the interest charges will rape you in the long run. Credit card interest rates average 20%, which means if you have a $100 balance for a year, you'll need $120 to pay it off. Now imagine if you have a couple thousand dollars worth of debt, now those interest charges are in the hundreds of dollars.

[ThatGuy]

What the heck is dredit?

*edited thread title.

[s13gold]

n3ver seen that before..but..spend within ur limits

[lucky7]

never heard of any of this before.

i consider the CC, stictly a convenience item. meaning, i dont buy anything unless i have the cash on hand. my credit limit is $15,000. but my monthly statement ranges from $500 - $1,500 each month. and it is paid off in FULL each month. as far as im concerned, a 'balance' = fail! mastercard doesnt like me for paying my shit off each month, but EFF them.

[SimpleS14]

All I heard was stay below 50% of your CC debit (on the card only) AND as a whole (compared to your overall limit). This is good on your score and can increase your credit limit.

[xcusememisswyn]

The less of your overall credit limit being used at the time that your credit score is checked, the better your score will be. This means that you have a 500 dollar credit limit, and you have $400 outstanding, your credit score will be lower than if you have $5000 limit and have $400 outstanding. If you ask your credit company for a raise in your limit, there is a good chance that you will receive it, but that does not mean you should use it.

My limit was $500, and i did all my spending on it, but paid the bill off monthly. I then learned that the percentage of your limit used affects your score, so i raised my limit to $5000, but never go over $1000 and usually stay under $500. Im only 19 y/o but my credit score is already in the high 700's, so I have been doing a good job, and i would recommend the same to anyone else.

Dont carry balances, it just means you lose money, and it is not good for your score either.

[S13SilviaGirl]

Debt to credit ratio:

Credit limit $5000
Deb max $1500

Yet your debt shouldnt be more than 10% of your income or something like that. Shit I have it around here somewhere. I will dig it up for ya.

[iPurple_Misfit!]

So paying only half of the credit line on your credit card is bad then???? i have a $500 credit line on a card, but normally only pay half. so is this bad on my behalf? but then again i dont normally use all of it either.

[xcusememisswyn]

its better to pay your entire balance every month and not carry any over..

i use only my credit card for the month, then pay it off entirely at the end of each month, and i dont have any other credit and my score is already like 750 after less than a year, so it must work

[s13gold]

its better to pay your entire balance every month and not carry any over..

i use only my credit card for the month, then pay it off entirely at the end of each month, and i dont have any other credit and my score is already like 750 after less than a year, so it must work
of course.......

[S13SilviaGirl]

So paying only half of the credit line on your credit card is bad then???? i have a $500 credit line on a card, but normally only pay half. so is this bad on my behalf? but then again i dont normally use all of it either.


Use the card and pay it off as previously said. The longer you have credit the better, and it is even better if you pay it off. The more balance you hold t he more in debt you are. Also, ask for better interest rates, lie to them and say that you recieved an offer for a $1500 credit line and a 5% interest rate. More than likely your credit company will increase your credit and give you a break on the interest. Remember it is good to have credit AVAILABLE to you. It isnt good to OWE on credit...unless it is a home loan, that is a given.

To help you out a little better, what is your monthly income approx.?

It is all about budgeting it out and seeing what you have and what you can afford to have.

If you want to PM me feel free. I am more than happy to help!